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Next Generation ACOs to be named soon

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Patrick Conway, M.D., acting principal deputy administrator and chief medical officer at the Centers for Medicare & Medicaid Services. says that the CMS will soon name the first cohort of Medicare’s Next Generation Accountable Care Organizations.

The CMS presented the Next Generation ACO program in March,  with applications due in June. These ACOs are an alternative to Medicare’s other ACO models, the Shared Savings and Pioneer programs. The Next Generation ACOs will let hospitals and  physicians  take more financial risk for their patient populations. It also created new ways  to manage  ACOs. The idea is that that could lure  providers afraid of taking on riskier payment models.

The  two risk-arrangement options  are one in which   providers can share in 80 percent of the savings or losses based on their quality and cost-control efforts, or one that involves 100 percent risk. And a formula that doesn’t solely rely on an ACO’s past performance determine the savings.

The  Next Generation program could be a way to entice large integrated delivery systems that  avoided  other ACO models, and a way to keep Shared Savings and Pioneers ACOs from quitting ACOs entirely.




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